- Increasing short positions could boost ADA and XRP prices.
- Cardano’s network adoption is growing with Sundae v3 protocol activity.
The cryptocurrency world is buzzing about Cardano’s native token, ADA. Fiery Trading just conducted a technical analysis on TradingView that suggests that if ADA keeps trading in its present channel, it may increase sharply to $40 or more. With the next bull cycle fast approaching, this bullish forecast indicates that ADA may soon hit an explosive all-time high.
Cardano’s Bullish Predictions and High Return Potential
Although not very likely, cryptocurrency analyst Fiery Trading emphasized that the anticipated return ratio makes this scenario “worth the risk.” The expert urged investors to think about ADA as a worthwhile addition to their portfolios by pointing out that current levels might be “your best ADA entry for the rest of your life.”
Remarkably, short sellers have been increasing their wagers against ADA as well as XRP, the native coin of the XRP Ledger. For long-term investors, this tendency can be a good development. The liquidation of short positions can support the increase in the prices of these cryptocurrencies.
Funding rates on Binance show a preponderance of short positions over long ones starting in September 2023 for ADA and May 2024 for XRP, according to on-chain analytics company Santiment.
Current Market Performance
ADA is currently valued at about $0.3916, up 0.86% in the last day, according to CoinMarketCap data. Over the previous seven days, though, the token has demonstrated a bearish posture, declining by 0.46%. The present volatility and uncertainty in the market are reflected in this mixed performance.
Furthermore, supporting the optimistic picture is the growing use of Cardano’s ecosystem. CNF previously reported that, as of the previous weekend, the Sundae v3 protocol from Cardano had handled around 9,264 orders in the preceding 24 hours, showing a notable increase in usage.
